US pending home sales fell again in April

After a hot start to the homebuying season, pending home sales in April slumped for the second consecutive month thanks in part to "astoundingly" low inventory, according to the National Association of Realtors. Only the West saw an increase in contract signings last month. "More immediately, though, the April pending sales index suggests that existing home sales will fall in May, though note that they have run higher than implied by pending sales in recent months".

Last month, the NAR said the stock market's rise and the expectation that interest rates would rise was spurring "significant interest" in homebuying. But the association says its Realtor members report foot traffic that is higher than it was last April. "To date, there are no indications investors are ready to sell".

On a longer-term view, Yun warned that owners who had bought to let during the crisis should he mindful that in five years' time the number of young adults was expected to shrink.

They fell 3.3 percent from a year ago. One, home prices continue to leap forward. In 2016, existing sales increased 3.8 percent and prices rose 5.1 percent.

South: PHSI declined 2.7 percent to 125.9 in April, down 2.3 percent year over year.

The index has been above 100 (the "average" reading) for 32 straight months. To register contact Adam DeSanctis, 202-383-1178 or adesanctis@realtors.org. But that might be some of the problem - homes are in high demand, there just aren't enough to go around.

Approximately 22 percent of homes sold in April were under contract within two weeks and almost 25 percent sold above their list price, which is the highest percentage that Redfin has recorded.

The index level was benchmarked to 100 in 2001, which was the first year to be examined. By coincidence, the volume of existing-home sales in 2001 fell within the range of 5.0 to 5.5 million, which is considered normal for the current US population. This and other news releases are posted in the "News, Blogs and Videos" tab on the website.

  • Zachary Reyes